The UK government has introduced new reporting obligations for crypto asset service providers, aligning with the OECD’s Crypto-Asset Reporting Framework (CARF). The Reporting Cryptoasset Service Providers (Due Diligence and Reporting Requirements) Regulations 2025 (SI 2025/744), enacted on 24 June 2025, will come into force on 1 January 2026.
Under the new rules, UK-based Reporting Crypto Asset Service Providers (RCASPs) will be required to register with HMRC and collect annual information on users’ in-scope crypto asset transactions, activities, and tax residency. The information must be reported electronically, and non-compliance will trigger penalties.
RCASPs must also inform non-UK users that their data may be exchanged with other jurisdictions participating in CARF. Likewise, the UK will benefit from reciprocal data-sharing agreements to combat tax evasion and avoidance.
The introduction of these rules follows a public consultation earlier this year and reflects HMRC’s commitment to closing data gaps in the rapidly evolving crypto space. The aim is to prevent the use of crypto assets to circumvent existing international reporting obligations such as the Common Reporting Standard (CRS).
The full regulations can be accessed here.